Cut Costs by Retiring Legacy ERP Systems
In today’s fast-paced manufacturing environment, achieving both efficiency and cost savings has become essential. One effective way for organizations to meet these goals is by retiring their outdated legacy platforms.
Epicor and Forrester Consulting have once again partnered to conduct the Total Economic Impact™ Of Epicor Kinetic for Manufacturing study. This analysis highlights how transitioning to Kinetic has enabled organizations to cut costs by replacing their on-premises ERP systems with a modern, cloud-based alternative.
Epicor Kinetic stands out as a cloud-native ERP solution designed specifically for the manufacturing industry. One of its key strengths is the seamless ability to transition from an on-premises setup to the cloud. This flexibility has empowered organizations to reduce expenses tied to maintaining legacy ERP tools.
Several companies interviewed during the study reported significant cost savings after retiring their outdated systems. By moving to Kinetic, they were able to cut annual maintenance and platform support costs considerably. Legacy ERP systems lack the sophistication needed to accurately track key business metrics. These older systems require substantial resources for upkeep resources and those resources could have been better allocated elsewhere.
Forrester’s analysis quantified the benefits of retiring legacy ERP systems, using a financial model based on the following assumptions:
- Annual maintenance fees for two legacy ERP systems, Tool1 and Tool2, were approximately $96,000 and $144,000, respectively. These costs were calculated using a per-user, perpetual pricing model.
- The decommissioning of Tool1 began in Year 2 and was completed by Year 4. Similarly, the decommissioning of Tool2 started in Year 3 and concluded by Year 5.
The results demonstrate that transitioning to Epicor Kinetic is a cost-effective solution. Organizations that transitioned away from legacy ERP systems experienced notable reductions in their annual maintenance and support expenses. These savings were then reinvested into other areas, driving improvements in efficiency and productivity across the board.
As manufacturing companies plan for the future, eliminating legacy platforms is proving to be a strategic move that delivers measurable cost savings. The ability to transition seamlessly between on-premises and cloud-based ERP solutions like Epicor Kinetic offers the flexibility needed to optimize operations and reduce unnecessary expenses. As awareness of these benefits grows, the adoption of modern, cloud-native ERP systems is expected to accelerate across the manufacturing industry.
At 2W Tech, we specialize in guiding organizations through the complex process of modernizing their ERP systems. With decades of experience as an Epicor Platinum Partner, we understand the challenges of transitioning from legacy systems to Epicor Kinetic. Our team provides end-to-end support, from assessing your current systems to planning and executing a seamless migration to Kinetic. We ensure minimal disruption to your operations while helping you unlock the cost savings, scalability, and efficiency that come with a modern, cloud-based ERP. With personalized training and ongoing support, 2W Tech ensures your team is equipped to maximize the value of your new system and drive long-term success. Let us help you take the first step toward a more efficient and cost-effective future with Epicor Kinetic. Give us a call today.
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